USD/THB Dips Supported

Like elsewhere in the region, USD/THB has seen support emerge after tracking lower in the first part of trade. From lows close to 35.05 we now sit back at 35.20, close to unchanged for the session. July highs in the pair come in just above the 35.30 level, while recent lows rest near 34.84. We are above all key EMAs, with the 20-day, near 35.05, the closest.

• The local data calendar is quiet this week, with only June consumer confidence out on the 13th (this Thursday).
• Thursday should also see the National Assembly gather, where it is expected to vote for a new PM. Challenger Pita Limjaroenrat may face opposition in the Senate, but held a rally on Sunday to galvanize support. Pita's 8-party coalition holds a clear majority in the 500-member house but needs the backing of more than a quarter of the 250-member Senate to be confirmed as PM
• Elsewhere, Nomura has cut its 2023 Thailand GDP forecast to 3.4% (from 4.0%), and lowered its current account forecast to 2.6% of GDP from 4.7%. The bank citied lower than expected tourism spending as a driver of the forecast change.